Case Law Details
P.K. Ores Pvt. Ltd. Vs Commissioner of Sales Tax (Orissa High Court)
It is admitted fact on record that the petitioner has deposited an amount of tax admitted in self-assessed returns beyond the time stipulated under Section 39 and hence the CT & GST Officer, Bhubaneswar-II Circle, Bhubaneswar had raised demand of interest to the tune of Rs.68,15,506/- vide GST DRC-07 for the period April 2019 to December 2019.
Since interest is a part of tax and such tax being belated payment in respect of self-assessment, Section 80 of the OGST Act clearly excludes grant of instalment under the present fact-situation. However, the Commissioner is not conferred with power to allow such instalment in respect of amount due as per self-assessment return(s) furnished. Section 80 empowers the Commissioner to grant permission only to the taxable person to make payment of any amount due on instalment basis, on an application filed electronically in Form GST DRC-20 as prescribed under Rule 158. The Commissioner after considering the request by the taxable person in Form GST DRC-20 and report of the jurisdictional officer, may issue an order in Form GST DRC-21, allowing the taxable person either extend the time or allow payment of any amount due under the Act on instalment basis. This provision, therefore, applies to amounts due other than the self-assessed liability shown in any return. The instalment period shall not exceed 24 months. The taxable person shall also be liable to pay prescribed interest on the amount due from the first day such tax was due to be payable till the date tax is paid. In view of proviso to Section 80, if default occurs in payment of any one instalment, the taxable person would be required to pay the whole outstanding balance payable on such date of default itself without further notice. There was, therefore, no scope for the Commissioner of CT&GST to entertain application for grant of instalment.
In view of the above discussion, the Commissioner of CT&GST is justified in rejecting the prayer of the petitioner to deposit the interest levied on account of belated deposit of admitted tax as per self-assessed returns furnished in terms of Section 39 read with Section 59 of the CGST/OGST Act in instalment under Section 80 read with Rule 158. The writ petition, thus, being devoid of any merit, is dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
